Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2019 | Jan. 31, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ENTA | |
Entity Registrant Name | ENANTA PHARMACEUTICALS, INC. | |
Entity Central Index Key | 0001177648 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity File Number | 001-35839 | |
Security Exchange Name | NASDAQ | |
Entity Tax Identification Number | 04-3205099 | |
Entity Address, Address Line One | 500 Arsenal Street | |
Entity Address, City or Town | Watertown | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02472 | |
City Area Code | 617 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Local Phone Number | 607-0800 | |
Entity Incorporation, State or Country Code | DE | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Entity Interactive Data Current | Yes | |
Entity Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding | 19,924,426 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 27,558 | $ 51,230 |
Short-term marketable securities | 346,227 | 284,006 |
Accounts receivable | 52,570 | 51,313 |
Prepaid expenses and other current assets | 14,153 | 15,299 |
Total current assets | 440,508 | 401,848 |
Long-term marketable securities | 40,941 | 65,013 |
Property and equipment, net | 10,407 | 10,927 |
Deferred tax assets | 10,656 | 11,341 |
Operating lease, right-of-use assets | 7,762 | |
Restricted cash | 608 | 608 |
Other long-term assets | 92 | 92 |
Total assets | 510,974 | 489,829 |
Current liabilities: | ||
Accounts payable | 6,596 | 6,689 |
Accrued expenses and other current liabilities | 9,411 | 15,920 |
Operating lease liabilities | 3,132 | |
Total current liabilities | 19,139 | 22,609 |
Operating lease liabilities, net of current portion | 5,987 | |
Series 1 nonconvertible preferred stock | 1,628 | 1,628 |
Other long-term liabilities | 1,933 | 3,100 |
Total liabilities | 28,687 | 27,337 |
Commitments and contingencies (Note 12) | ||
Stockholders' equity: | ||
Common stock; $0.01 par value per share, 100,000 shares authorized; 19,810 and 19,703 shares issued and outstanding at December 31, 2019 and September 30, 2019, respectively | 198 | 197 |
Additional paid-in capital | 304,672 | 298,409 |
Accumulated other comprehensive income | 234 | 146 |
Retained earnings | 177,183 | 163,740 |
Total stockholders' equity | 482,287 | 462,492 |
Total liabilities and stockholders' equity | $ 510,974 | $ 489,829 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Sep. 30, 2019 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 19,810,000 | 19,703,000 |
Common stock, shares outstanding | 19,810,000 | 19,703,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||
Royalty revenue | $ 52,570 | $ 69,886 |
Type Of Revenue Extensible List | us-gaap:RoyaltyMember | us-gaap:RoyaltyMember |
Operating expenses: | ||
Research and development | $ 32,778 | $ 34,878 |
General and administrative | 6,921 | 7,152 |
Total operating expenses | 39,699 | 42,030 |
Income from operations | 12,871 | 27,856 |
Other income (expense): | ||
Interest income (expense), net | 2,076 | 1,885 |
Total other income (expense), net | 2,076 | 1,885 |
Income before income taxes | 14,947 | 29,741 |
Income tax expense | (1,504) | (3,730) |
Net income | $ 13,443 | $ 26,011 |
Net income per share: | ||
Basic | $ 0.68 | $ 1.34 |
Diluted | $ 0.65 | $ 1.25 |
Weighted average shares outstanding: | ||
Basic | 19,751 | 19,426 |
Diluted | 20,773 | 20,810 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 13,443 | $ 26,011 |
Other comprehensive income: | ||
Net unrealized gains on marketable securities, net of tax of ($28) and ($45) | 88 | 141 |
Total other comprehensive income, net of tax | 88 | 141 |
Comprehensive income | $ 13,531 | $ 26,152 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net unrealized gains (losses) on marketable securities, tax | $ (28) | $ (45) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] |
Beginning Balance at Sep. 30, 2018 | $ 393,679 | $ 194 | $ 276,526 | $ (398) | $ 117,357 |
Beginning Balance, Shares at Sep. 30, 2018 | 19,395 | ||||
Exercise of stock options | 1,161 | 1,161 | |||
Exercise of stock options, Shares | 40 | ||||
Stock-based compensation expense | 5,843 | 5,843 | |||
Total other comprehensive income, net of tax | 141 | 141 | |||
Net income | 26,011 | 26,011 | |||
Ending Balance at Dec. 31, 2018 | 426,835 | $ 194 | 283,530 | (257) | 143,368 |
Ending Balance, Shares at Dec. 31, 2018 | 19,435 | ||||
Beginning Balance at Sep. 30, 2019 | 462,492 | $ 197 | 298,409 | 146 | 163,740 |
Beginning Balance, Shares at Sep. 30, 2019 | 19,703 | ||||
Exercise of stock options | $ 2,306 | $ 1 | 2,305 | ||
Exercise of stock options, Shares | 76 | 76 | |||
Vesting of restricted stock units, net of withholding | $ (1,140) | (1,140) | |||
Vesting of restricted stock units, net of withholding, Shares | 31 | ||||
Stock-based compensation expense | 5,098 | 5,098 | |||
Total other comprehensive income, net of tax | 88 | 88 | |||
Net income | 13,443 | 13,443 | |||
Ending Balance at Dec. 31, 2019 | $ 482,287 | $ 198 | $ 304,672 | $ 234 | $ 177,183 |
Ending Balance, Shares at Dec. 31, 2019 | 19,810 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities | ||
Net income | $ 13,443 | $ 26,011 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation expense | 5,098 | 5,843 |
Depreciation and amortization expense | 904 | 680 |
Deferred income taxes | 657 | (918) |
Premium paid on marketable securities | (988) | |
Accretion of discount on marketable securities | (330) | (977) |
Other non-cash items | (2) | 39 |
Change in operating assets and liabilities: | ||
Accounts receivable | (1,257) | (2,681) |
Prepaid expenses and other current assets | 1,146 | (3,182) |
Operating lease, right-of-use assets | 520 | |
Accounts payable | (179) | 124 |
Accrued expenses | (5,989) | 598 |
Income taxes payable | 4,470 | |
Operating lease liabilities | (593) | |
Other long-term liabilities | (67) | 247 |
Net cash provided by operating activities | 12,363 | 30,254 |
Cash flows from investing activities | ||
Purchase of marketable securities | (117,461) | (119,546) |
Proceeds from maturities and sale of marketable securities | 80,748 | 98,999 |
Purchase of property and equipment | (488) | (384) |
Net cash used in investing activities | (37,201) | (20,931) |
Cash flows from financing activities | ||
Proceeds from exercise of stock options | 2,306 | 1,161 |
Payments for settlement of share-based awards | (1,140) | |
Payments of capital lease obligations | (21) | |
Net cash provided by financing activities | 1,166 | 1,140 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (23,672) | 10,463 |
Cash, cash equivalents and restricted cash at beginning of period | 51,838 | 64,510 |
Cash, cash equivalents and restricted cash at end of period | 28,166 | 74,973 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 5 | |
Supplemental disclosure of non-cash investing information: | ||
Purchases of fixed assets included in accounts payable and accrued expenses | 216 | $ 1,304 |
Operating lease liabilities arising from obtaining right-of-use assets | $ 1,131 |
Nature of the Business and Basi
Nature of the Business and Basis of Presentation | 3 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of the Business and Basis of Presentation | 1. Nature of the Business and Basis of Presentation Enanta Pharmaceuticals, Inc. (the “Company”), incorporated in Delaware in 1995, a biotechnology company that uses its robust, chemistry-driven approach and drug discovery capabilities to create small molecule drugs primarily for the treatment of viral infections and liver diseases. The Company discovered glecaprevir, the second protease inhibitor discovered and developed through its collaboration with AbbVie for the treatment of chronic hepatitis C virus, or HCV. Glecaprevir is co-formulated as part of AbbVie’s leading direct-acting antiviral (DAA) combination treatment for HCV, which is marketed under the tradenames MAVYRET ® Royalties from the Company’s AbbVie collaboration and its existing financial resources provide funding to support the Company’s wholly-owned research and development programs , which are primarily focused on the following disease targets: The Company is subject to many of the risks common to companies in the biotechnology industry including, but not limited to, the uncertainties of research and development, competition from technological innovations of others, dependence on collaborative arrangements, protection of proprietary technology, dependence on key personnel and compliance with government regulation. Product candidates currently under development will require significant additional research and development efforts, including extensive preclinical and clinical testing and regulatory approvals, prior to commercialization. These efforts require significant amounts of capital, adequate personnel infrastructure, and extensive compliance reporting capabilities. Unaudited Interim Financial Information The consolidated balance sheet at September 30, 2019 was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America (“GAAP”). The accompanying unaudited consolidated financial statements as of December 31, 2019 and for the three months ended December 31, 2019 and 2018 have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the Company’s audited financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2019. In the opinion of management, all adjustments, consisting of normal recurring adjustments necessary for a fair statement of the Company’s financial position as of December 31, 2019 and results of operations for the three months ended December 31, 2019 and 2018 and cash flows for the three months ended December 31, 2019 and 2018, have been made. The results of operations for the three months ended December 31, 2019 are not necessarily indicative of the results of operations that may be expected for subsequent quarters or the year ending September 30, 2020. The accompanying consolidated financial statements have been prepared in conformity with GAAP. All amounts in the consolidated financial statements and in the notes to the consolidated financial statements, except per share amounts, are in thousands unless otherwise indicated. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies For the Company’s Significant Accounting Policies, please refer to its Annual Report on Form 10-K for the fiscal year ended September 30, 2019. Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”). Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions reflected in these consolidated financial statements include, but are not limited to, management’s judgments with respect to its revenue arrangements; valuation of Series 1 nonconvertible preferred stock and stock-based awards; the accrual of research and development expenses, and the accounting for income taxes, including uncertain tax positions and the valuation of net deferred tax assets. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. Actual results could differ from the Company’s estimates. Recently Adopted Accounting Pronouncements The Company adopted ASU No. 2016-02, Leases (Topic 842), as of October 1, 2019, using the modified retrospective method under ASU No. 2018-11, Leases (Topic 842): Targeted Improvements. The transition method allows entities to apply the transition requirements at the effective date rather than at the beginning of the earliest comparative period presented. The Company’s reporting for comparative periods is presented in accordance with ASC 840, Leases. Adoption of the new standard resulted in the recording of right of use (“ROU”) assets and lease liabilities of $7,151 and $8,622, respectively. The adoption of the standard did not have a material impact on the Company’s results of operations or cash flows. The Company elected to use the transition package of three practical expedients, which among other things, allowed the Company to carry forward the historical lease classification. The Company has elected, under Topic 842, the further practical expedient not to separate non-lease components from the lease components to which they relate and instead to combine them and account for them as a single lease component. The Company also elected the accounting policy election to keep leases with a term of twelve months or less off the balance sheet and to recognize payments for those leases on a straight-line basis over the lease term. ROU assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. At the inception of the arrangement, the Company determines if an arrangement is a lease based on assessment of the terms and conditions of the contract. Operating lease ROU assets and lease liabilities are recognized at commencement date, and thereafter if modified, based on the present value of lease payments over the lease term. The lease term includes any renewal or early-termination options that the Company is reasonably assured to exercise. The present value of lease payments is determined by using the interest rate implicit in the lease, if that rate is readily determinable; otherwise, the Company uses its estimated secured incremental borrowing rate for that lease term. The underlying assets of the Company’s leases as of the adoption date consisted of office and laboratory space. In March 2017, the FASB issued ASU No. 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities (“ASU 2017-08”) which requires companies to amend the amortization period for premiums on debt securities with explicit call features to be the period through the earliest call date rather than through the contractual life of the debt instrument. This amendment aims to more closely align the recognition of interest income with the manner in which market participants price such instruments. The Company adopted the new standard on the effective date of October 1, 2019. T financial position and results of operations. Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326) (“ASU 2016-13”), which introduces a new methodology for accounting for credit losses on financial instruments, including available-for-sale debt securities. The guidance establishes a new “expected loss model” that requires entities to estimate current expected credit losses on financial instruments by using all practical and relevant information. Any expected credit losses are to be reflected as allowances rather than reductions in the amortized cost of available-for-sale debt securities. This amendment is effective for the Company in the fiscal year beginning October 1, 2020. The Company is currently evaluating the potential impact that ASU 2016-13 may have on its financial position and results of operations. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption. |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 3 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | 3. Fair Value of Financial Assets and Liabilities The following tables present information about the Company’s financial assets and liabilities that were subject to fair value measurement on a recurring basis as of December 31, 2019 and September 30, 2019, and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value: Fair Value Measurements at December 31, 2019 Using: Level 1 Level 2 Level 3 Total (in thousands) Assets: Cash equivalents: Money market funds $ 6,065 $ — $ — $ 6,065 Commercial paper — 17,423 — 17,423 Marketable securities: U.S. Treasury notes 176,856 — — 176,856 Commercial paper — 77,269 — 77,269 Corporate bonds — 133,043 — 133,043 $ 182,921 $ 227,735 $ — $ 410,656 Liabilities: Series 1 nonconvertible preferred stock $ — $ — $ 1,628 $ 1,628 $ — $ — $ 1,628 $ 1,628 Fair Value Measurements at September 30, 2019 Using: Level 1 Level 2 Level 3 Total (in thousands) Assets: Cash equivalents: Money market funds $ 44,569 $ — $ — $ 44,569 Marketable securities: U.S. Treasury notes 170,515 — — 170,515 Corporate bonds — 111,837 — 111,837 Commercial paper — 66,667 — 66,667 $ 215,084 $ 178,504 $ — $ 393,588 Liabilities: Series 1 nonconvertible preferred stock $ — $ — $ 1,628 $ 1,628 $ — $ — $ 1,628 $ 1,628 During the three months ended December 31, 2019 and 2018, there were no transfers between Level 1, Level 2 and Level 3. The outstanding shares of Series 1 nonconvertible preferred stock are measured at fair value. The fair value of these instruments was based on significant inputs not observable in the market, which represented a Level 3 measurement within the fair value hierarchy. The Company utilized a probability-weighted valuation model which takes into consideration various outcomes that may require the Company to transfer assets upon exercise. Changes in the fair value of the Series 1 nonconvertible preferred stock are recognized in other income (expense), net in the consolidated statements of operations. The recurring Level 3 fair value measurements of the Company’s outstanding Series 1 nonconvertible preferred stock using probability-weighted discounted cash flow include the following significant unobservable inputs: Range (Weighted Average) December 31, September 30, Unobservable Input 2019 2019 Probabilities of payout 0%-60% 0%-60% Discount rate 5.75% 6.00% The following table provides a rollforward of the aggregate fair values of the Company’s outstanding Series 1 nonconvertible preferred stock for which fair value is determined by Level 3 inputs: Series 1 Nonconvertible Preferred Stock Balance, September 30, 2019 $ 1,628 Change in fair value of nonconvertible preferred stock — Balance, December 31, 2019 $ 1,628 |
Marketable Securities
Marketable Securities | 3 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Marketable Securities | 4. Marketable Securities As of December 31, 2019 and September 30, 2019, the fair value of available-for-sale marketable securities, by type of security, was as follows: December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) U.S. Treasury notes $ 176,712 $ 144 $ — 176,856 Corporate bonds 132,928 127 (12 ) 133,043 Commercial Paper 77,269 — — 77,269 $ 386,909 $ 271 $ (12 ) $ 387,168 September 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) U.S. Treasury notes $ 170,519 $ 60 $ (64 ) $ 170,515 Corporate bonds 111,690 170 (23 ) 111,837 Commercial Paper 66,667 — — 66,667 $ 348,876 $ 230 $ (87 ) $ 349,019 As of December 31, 2019 and September 30, 2019 marketable securities consisted of investments that mature within one year, with the exception of certain corporate bonds and U.S. Treasury notes, which have maturities between one and three years and an aggregate fair value of $40,941 and $65,013, respectively. |
Accrued Expenses and Other Long
Accrued Expenses and Other Long-Term Liabilities | 3 Months Ended |
Dec. 31, 2019 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Other Long-Term Liabilities | 5. Accrued Expenses and Other Long-Term Liabilities Accrued expenses and other current liabilities, as well as other long-term liabilities, consisted of the following as of December 31, 2019 and September 30, 2019: December 31, September 2019 2019 (in thousands) Accrued expenses: Accrued research and development expenses $ 3,877 $ 6,936 Accrued payroll and related expenses 1,628 3,894 Accrued clinical manufacturing 2,580 3,447 Accrued professional fees 921 759 Accrued other 405 884 $ 9,411 $ 15,920 Other long-term liabilities: Uncertain tax positions $ 1,679 $ 1,746 Accrued rent expense — 900 Capital lease obligation — 200 Asset retirement obligation 254 254 $ 1,933 $ 3,100 |
AbbVie Collaboration
AbbVie Collaboration | 3 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
AbbVie Collaboration | 6. AbbVie Collaboration The Company has a Collaborative Development and License Agreement (as amended, the “AbbVie Agreement”), with AbbVie to identify, develop and commercialize HCV NS3 and NS3/4A protease inhibitor compounds, including paritaprevir and glecaprevir, under which the Company has received license payments, proceeds from a sale of preferred stock, research funding payments, milestone payments and royalties totaling approximately $922,000 through December 31, 2019. Since the Company satisfied all of its performance obligations under the AbbVie Agreement by the end of fiscal 2011, all milestone payments received since then have been recognized as revenue when the milestones were achieved by AbbVie. The Company is receiving annually tiered royalties per Company protease product ranging from ten percent up to twenty percent, or on a blended basis from ten percent up to the high teens, on the portion of AbbVie’s calendar year net sales of each HCV regimen that is allocated to the protease inhibitor in the regimen. Beginning with each January 1, the cumulative net sales of a given royalty-bearing protease inhibitor product start at zero for purposes of calculating the tiered royalties on a product-by-product basis. |
Series 1 Nonconvertible Preferr
Series 1 Nonconvertible Preferred Stock | 3 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Series 1 Nonconvertible Preferred Stock | 7. Series 1 Nonconvertible Preferred Stock As of December 31, 2019, 1,931 shares of Series 1 nonconvertible preferred stock were issued and outstanding. Since these shares qualify as a derivative, the outstanding shares are carried at fair value as a liability on the Company’s consolidated balance sheet. |
Stock-Based Awards
Stock-Based Awards | 3 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Awards | 8. Stock-Based Awards The Company grants stock-based awards, including stock options and unit awards under its 2019 Equity Incentive Plan (the “2019 Plan”), which was approved by its stockholders on February 28, 2019. The Company also has outstanding unit awards, stock options and restricted stock unit awards under its 2012 Equity Incentive Plan (the “2012 Plan”) and its amended and restated 1995 Equity Incentive Plan (the “1995 Plan”), but is no longer granting awards under these plans. The following table summarizes stock option activity, including performance-based options, for the year-to-date period ending December 31, 2019: Shares Issuable Under Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Outstanding as of September 30, 2019 2,967 $ 46.54 6.7 $ 57,336 Granted 577 63.32 Exercised (76 ) 30.16 Forfeited (23 ) 75.36 Outstanding as of December 31, 2019 3,445 $ 49.53 6.8 $ 58,637 Options vested and expected to vest as of December 31, 2019 3,445 $ 49.53 6.8 $ 58,637 Options exercisable as of December 31, 2019 2,002 $ 38.28 5.4 $ 51,630 Market and Performance-Based Stock Unit Awards The Company awards both performance share units, or PSUs, and relative total stockholder return units, or rTSRUs, to its executive officers. The number of units represents the target number of shares of common stock that may be earned; however, the actual number of shares that may be earned ranges from 0% to 150% of the target number. PSUs rTSRUs Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value (in thousands, except per share data) Unvested at September 30, 2019 41 $ 73.02 41 $ 67.76 Granted 27 63.94 27 45.81 Vested — — — — Cancelled — — — — Unvested at December 31, 2019 68 $ 69.37 68 $ 58.94 Restricted Stock Units During the three months ended December 31, 2016, the Company awarded restricted stock units to its employees, which vest 50% in three years and 50% in four years, provided the employee remains employed with the Company at the time of vesting. The fair value per share of these awards was determined based on the intrinsic value of the stock on the date of grant and is being recognized as stock-based compensation expense over the requisite service period. The following table summarizes the restricted stock unit activity for the year-to-date period ending December 31, 2019: Restricted Stock Units Weighted Average Grant Date Fair Value (in thousands, except per share data) Unvested at September 30, 2019 95 $ 30.00 Granted — — Vested (48 ) 30.00 Cancelled (1 ) 30.00 Unvested at December 31, 2019 46 $ 30.00 Stock-Based Compensation Expense During the three months ended December 31, 2019 and 2018, the Company recognized the following stock-based compensation expense: Three Months ended December 31, 2019 2018 (in thousands) Research and development $ 2,492 $ 2,274 General and administrative 2,606 3,569 $ 5,098 $ 5,843 Three Months ended December 31, 2019 2018 (in thousands) Stock options $ 4,335 $ 3,904 Performance stock units 243 1,206 rTSRUs 362 531 Restricted stock units 158 202 $ 5,098 $ 5,843 During the three months ended December 31, 2019 and 2018, the Company recognized stock-based compensation expense for PSUs and performance-based options for which vesting became probable upon achievement of performance-based targets that occurred during their respective periods. As of December 31, 2019, the Company had an aggregate of $52,006 of unrecognized stock-based compensation cost, which is expected to be recognized over a weighted average period of 2.8 years. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 9. Net Income Per Share Basic and diluted net income per share attributable to common stockholders was calculated as follows for the three months ended December 31, 2019 and 2018: Three Months Ended December 31, 2019 2018 (in thousands, except per share data) Basic net income per share: Numerator: Net income $ 13,443 $ 26,011 Denominator: Weighted average common shares outstanding—basic 19,751 19,426 Net income per share common share—basic $ 0.68 $ 1.34 Diluted net income per share: Numerator: Net income $ 13,443 $ 26,011 Denominator: Weighted average common shares outstanding—basic 19,751 19,426 Dilutive effect of common stock equivalents 1,022 1,384 Weighted average common shares outstanding—diluted 20,773 20,810 Net income per share common share—diluted $ 0.65 $ 1.25 Anti-dilutive common stock equivalents excluded from above 1,896 606 |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The Company’s provision for income taxes consists of federal and state taxes necessary to align the Company’s year-to-date tax provision with the annual effective rate that it expects to achieve for the full year. At each interim period, the Company updates its estimate of the annual effective tax rate and records cumulative adjustments as necessary. The authoritative guidance for accounting for income taxes allows use of the year-to-date effective tax rate (the “discrete method”) when a reliable estimate of the estimated annual effective tax rate cannot be made. During the three months ended December 31, 2019, the Company determined the use of the discrete method is more appropriate than the annual effective tax rate method due to the sensitivity of the Company’s tax rate to small changes in projected pre-tax earnings, which resulted in significant variations in the customary relationship between income tax expense and pretax income. As such, the Company has discretely calculated the tax provision based on pre-tax results through the three months ended December 31, 2019. For the three months ended December 31, 2019 and 2018, the Company recorded income tax expense of $1,504 and $3,730, respectively, both of which were attributable to the Company’s domestic operations. The Company has no foreign operations and therefore, has not provided for any foreign taxes. The Company files tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, the Company is subject to examination by federal and state jurisdictions, where applicable. The Company’s tax years are still open under statute from 2015 to the present. Earlier years may be examined to the extent that tax credit or net operating loss carryforwards are used in future periods. During 2018, the Company received notice of examination by the Internal Revenue Service (“IRS”) for the year ending September 30, 2016. The Company received and agreed to a notice of proposed adjustment from the IRS, which was paid in September 2018, the amount of which was immaterial to the financial statements. The Company is in the process of finalizing the completion of the IRS audit. During October 2018, the Company received notice of examination by the Massachusetts Department of Revenue (“DOR”) for the years ending September 30, 2015 and September 30, 2016. The Company received a notice of proposed adjustment from the DOR, the amount of which was immaterial to the financial statements. The Company is in the process of finalizing the completion of the DOR audit. The Company has not received notice of examination by any other jurisdictions for any other tax year open under statute. The Company had an unrecognized tax benefit of $1,679 and $1,650 as of December 31, 2019 and September 30, 2019, respectively. Unrecognized tax benefits represent tax positions for which reserves have been established. The Company’s policy is to record interest and penalties related to uncertain tax positions as part of its income tax provision. |
Leases
Leases | 3 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | 11. Leases The Company has two real estate leases for properties located in Watertown, Massachusetts. The first lease, for office and laboratory space at 500 Arsenal Street, was effective in fiscal 2011 and expires in September 2022 with an option to extend the lease term for an additional five years. The second lease, for office space located at 400 Talcott Avenue, was effective September 2018 and expires in August 2024 with two options to extend the lease term for an additional three years each. The options to extend the lease terms were not included in the right-of-use assets and lease liabilities as they were not reasonably certain of being exercised. he Company’s office and laboratory space leases require the Company to pay for certain operating expenses based on actual costs incurred and therefore as the amounts are variable in nature are expensed in the period incurred and included in variable lease costs. In October 2019, the Company entered into an agreement to lease units of equipment over eighteen-month lease periods commencing upon shipment of each unit. The lease agreement contains an option to terminate the lease early, however this early-termination option was not included in the right-of-use asset and lease liability as it was not reasonably certain of being exercised. and therefore as these costs are variable in nature, they are expensed in the period incurred and included in variable lease costs. The components of lease expense for the Company’s real estate and equipment leases were as follows: Three Months Ended December 31, 2019 (in thousands) Operating lease cost $ 663 Short-term lease cost — Variable lease cost 479 $ 1,142 Other information: Three months ended December 31, 2019 (in thousands) Cash paid for amounts included in the measurement of operating lease liabilities $ 736 Operating lease liabilities arising from obtaining right-of-use assets $ 1,131 December 31, 2019 (in thousands) Weighted-average remaining lease term - operating leases (in years) 2.99 Weighted-average discount rate - operating leases 6.50 % Incremental borrowing rates were used to calculate the present value of the Company’s real estate and equipment leases. Future annual minimum lease payments under the Company’s real estate and equipment operating leases as of December 31, 2019 were as follows: Years ended September 30, (in thousands) 2020 $ 2,713 2021 3,457 2022 2,786 2023 608 2024 519 Total future minimum lease payments 10,083 Less: imputed interest (964 ) Total operating lease liabilities $ 9,119 Included in the balance sheet: December 31, 2019 (in thousands) Current operating lease liabilities $ 3,132 Operating lease liabilities, net of current portion 5,987 Total operating lease liabilities $ 9,119 As previously disclosed in the Company’s 2019 Annual Report on Form 10-K and under the previous lease accounting standard, ASC 840, Leases, the following table summarizes the future minimum lease payments due under the operating leases as of September 30, 2019: Years Ended September 30, Operating Leases Capital Leases (in thousands) 2020 $ 2,728 $ 93 2021 2,803 101 2022 2,684 99 2023 608 — 2024 519 — Thereafter — — Total $ 9,342 $ 293 In connection with one of the real estate leases, the Company has a total outstanding letter of credit in the amount of $608 $608 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies Litigation and Contingencies Related to Use of Intellectual Property From time to time, the Company may become subject to legal proceedings, claims and litigation arising in the ordinary course of business. The Company currently is not a party to any threatened or pending litigation. However, third parties might allege that the Company or its collaborators are infringing their patent rights or that the Company is otherwise violating their intellectual property rights. Such third parties may resort to litigation against the Company or its collaborators, which the Company has agreed to indemnify. With respect to some of these patents, the Company expects that it will be required to obtain licenses and could be required to pay license fees or royalties, or both. These licenses may not be available on acceptable terms, or at all. A costly license, or inability to obtain a necessary license, would have a material adverse effect on the Company’s financial condition, results of operations or cash flows. The Company accrues contingent liabilities when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. Indemnification Agreements In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to customers, vendors, lessors, business partners, and other parties with respect to certain matters including, but not limited to, losses arising out of breach of such agreements or from services to be provided to the Company, or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with members of its board of directors and its executive officers that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is, in many cases, unlimited. To date, the Company has not incurred any material costs as a result of such indemnifications. In addition, the Company maintains officers and directors insurance coverage. The Company does not believe that the outcome of any claims under indemnification arrangements will have a material effect on its financial position, results of operations or cash flows, and it has not accrued any liabilities related to such obligations in its financial statements as of December 31, 2019. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions reflected in these consolidated financial statements include, but are not limited to, management’s judgments with respect to its revenue arrangements; valuation of Series 1 nonconvertible preferred stock and stock-based awards; the accrual of research and development expenses, and the accounting for income taxes, including uncertain tax positions and the valuation of net deferred tax assets. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. Actual results could differ from the Company’s estimates. |
Recently Adopted and Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements The Company adopted ASU No. 2016-02, Leases (Topic 842), as of October 1, 2019, using the modified retrospective method under ASU No. 2018-11, Leases (Topic 842): Targeted Improvements. The transition method allows entities to apply the transition requirements at the effective date rather than at the beginning of the earliest comparative period presented. The Company’s reporting for comparative periods is presented in accordance with ASC 840, Leases. Adoption of the new standard resulted in the recording of right of use (“ROU”) assets and lease liabilities of $7,151 and $8,622, respectively. The adoption of the standard did not have a material impact on the Company’s results of operations or cash flows. The Company elected to use the transition package of three practical expedients, which among other things, allowed the Company to carry forward the historical lease classification. The Company has elected, under Topic 842, the further practical expedient not to separate non-lease components from the lease components to which they relate and instead to combine them and account for them as a single lease component. The Company also elected the accounting policy election to keep leases with a term of twelve months or less off the balance sheet and to recognize payments for those leases on a straight-line basis over the lease term. ROU assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. At the inception of the arrangement, the Company determines if an arrangement is a lease based on assessment of the terms and conditions of the contract. Operating lease ROU assets and lease liabilities are recognized at commencement date, and thereafter if modified, based on the present value of lease payments over the lease term. The lease term includes any renewal or early-termination options that the Company is reasonably assured to exercise. The present value of lease payments is determined by using the interest rate implicit in the lease, if that rate is readily determinable; otherwise, the Company uses its estimated secured incremental borrowing rate for that lease term. The underlying assets of the Company’s leases as of the adoption date consisted of office and laboratory space. In March 2017, the FASB issued ASU No. 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities (“ASU 2017-08”) which requires companies to amend the amortization period for premiums on debt securities with explicit call features to be the period through the earliest call date rather than through the contractual life of the debt instrument. This amendment aims to more closely align the recognition of interest income with the manner in which market participants price such instruments. The Company adopted the new standard on the effective date of October 1, 2019. T financial position and results of operations. Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326) (“ASU 2016-13”), which introduces a new methodology for accounting for credit losses on financial instruments, including available-for-sale debt securities. The guidance establishes a new “expected loss model” that requires entities to estimate current expected credit losses on financial instruments by using all practical and relevant information. Any expected credit losses are to be reflected as allowances rather than reductions in the amortized cost of available-for-sale debt securities. This amendment is effective for the Company in the fiscal year beginning October 1, 2020. The Company is currently evaluating the potential impact that ASU 2016-13 may have on its financial position and results of operations. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption. |
Fair Value of Financial Asset_2
Fair Value of Financial Assets and Liabilities (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities that were Subject to Fair Value Measurement on Recurring Basis | The following tables present information about the Company’s financial assets and liabilities that were subject to fair value measurement on a recurring basis as of December 31, 2019 and September 30, 2019, and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value: Fair Value Measurements at December 31, 2019 Using: Level 1 Level 2 Level 3 Total (in thousands) Assets: Cash equivalents: Money market funds $ 6,065 $ — $ — $ 6,065 Commercial paper — 17,423 — 17,423 Marketable securities: U.S. Treasury notes 176,856 — — 176,856 Commercial paper — 77,269 — 77,269 Corporate bonds — 133,043 — 133,043 $ 182,921 $ 227,735 $ — $ 410,656 Liabilities: Series 1 nonconvertible preferred stock $ — $ — $ 1,628 $ 1,628 $ — $ — $ 1,628 $ 1,628 Fair Value Measurements at September 30, 2019 Using: Level 1 Level 2 Level 3 Total (in thousands) Assets: Cash equivalents: Money market funds $ 44,569 $ — $ — $ 44,569 Marketable securities: U.S. Treasury notes 170,515 — — 170,515 Corporate bonds — 111,837 — 111,837 Commercial paper — 66,667 — 66,667 $ 215,084 $ 178,504 $ — $ 393,588 Liabilities: Series 1 nonconvertible preferred stock $ — $ — $ 1,628 $ 1,628 $ — $ — $ 1,628 $ 1,628 |
Fair Value Measurements of the Company's Outstanding Series 1 Nonconvertible Preferred Stock | The recurring Level 3 fair value measurements of the Company’s outstanding Series 1 nonconvertible preferred stock using probability-weighted discounted cash flow include the following significant unobservable inputs: Range (Weighted Average) December 31, September 30, Unobservable Input 2019 2019 Probabilities of payout 0%-60% 0%-60% Discount rate 5.75% 6.00% |
Rollforward of Aggregate Fair Values of Outstanding Series 1 Nonconvertible Preferred Stock | The following table provides a rollforward of the aggregate fair values of the Company’s outstanding Series 1 nonconvertible preferred stock for which fair value is determined by Level 3 inputs: Series 1 Nonconvertible Preferred Stock Balance, September 30, 2019 $ 1,628 Change in fair value of nonconvertible preferred stock — Balance, December 31, 2019 $ 1,628 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Fair Value of Available-for-Sale Marketable Securities by Type of Security | As of December 31, 2019 and September 30, 2019, the fair value of available-for-sale marketable securities, by type of security, was as follows: December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) U.S. Treasury notes $ 176,712 $ 144 $ — 176,856 Corporate bonds 132,928 127 (12 ) 133,043 Commercial Paper 77,269 — — 77,269 $ 386,909 $ 271 $ (12 ) $ 387,168 September 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) U.S. Treasury notes $ 170,519 $ 60 $ (64 ) $ 170,515 Corporate bonds 111,690 170 (23 ) 111,837 Commercial Paper 66,667 — — 66,667 $ 348,876 $ 230 $ (87 ) $ 349,019 |
Accrued Expenses and Other Lo_2
Accrued Expenses and Other Long-Term Liabilities (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Payables And Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities as well as Other Long-Term Liabilities | Accrued expenses and other current liabilities, as well as other long-term liabilities, consisted of the following as of December 31, 2019 and September 30, 2019: December 31, September 2019 2019 (in thousands) Accrued expenses: Accrued research and development expenses $ 3,877 $ 6,936 Accrued payroll and related expenses 1,628 3,894 Accrued clinical manufacturing 2,580 3,447 Accrued professional fees 921 759 Accrued other 405 884 $ 9,411 $ 15,920 Other long-term liabilities: Uncertain tax positions $ 1,679 $ 1,746 Accrued rent expense — 900 Capital lease obligation — 200 Asset retirement obligation 254 254 $ 1,933 $ 3,100 |
Stock-Based Awards (Tables)
Stock-Based Awards (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Summary of Stock Option Activity Including Performance Based Options | The following table summarizes stock option activity, including performance-based options, for the year-to-date period ending December 31, 2019: Shares Issuable Under Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Outstanding as of September 30, 2019 2,967 $ 46.54 6.7 $ 57,336 Granted 577 63.32 Exercised (76 ) 30.16 Forfeited (23 ) 75.36 Outstanding as of December 31, 2019 3,445 $ 49.53 6.8 $ 58,637 Options vested and expected to vest as of December 31, 2019 3,445 $ 49.53 6.8 $ 58,637 Options exercisable as of December 31, 2019 2,002 $ 38.28 5.4 $ 51,630 |
Summary of Restricted Stock Unit Activity | The following table summarizes the restricted stock unit activity for the year-to-date period ending December 31, 2019: Restricted Stock Units Weighted Average Grant Date Fair Value (in thousands, except per share data) Unvested at September 30, 2019 95 $ 30.00 Granted — — Vested (48 ) 30.00 Cancelled (1 ) 30.00 Unvested at December 31, 2019 46 $ 30.00 |
Stock-Based Compensation Expense | During the three months ended December 31, 2019 and 2018, the Company recognized the following stock-based compensation expense: Three Months ended December 31, 2019 2018 (in thousands) Research and development $ 2,492 $ 2,274 General and administrative 2,606 3,569 $ 5,098 $ 5,843 Three Months ended December 31, 2019 2018 (in thousands) Stock options $ 4,335 $ 3,904 Performance stock units 243 1,206 rTSRUs 362 531 Restricted stock units 158 202 $ 5,098 $ 5,843 |
Performance Share Units and Relative Total Stockholder Return Units [Member] | |
Summary of PSUs and rTSRUs Activity | The following table summarizes PSU and rTSRU activity for the year-to-date period ending December 31, 2019: PSUs rTSRUs Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value (in thousands, except per share data) Unvested at September 30, 2019 41 $ 73.02 41 $ 67.76 Granted 27 63.94 27 45.81 Vested — — — — Cancelled — — — — Unvested at December 31, 2019 68 $ 69.37 68 $ 58.94 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Income Per Share Attributable to Common Stockholders | Basic and diluted net income per share attributable to common stockholders was calculated as follows for the three months ended December 31, 2019 and 2018: Three Months Ended December 31, 2019 2018 (in thousands, except per share data) Basic net income per share: Numerator: Net income $ 13,443 $ 26,011 Denominator: Weighted average common shares outstanding—basic 19,751 19,426 Net income per share common share—basic $ 0.68 $ 1.34 Diluted net income per share: Numerator: Net income $ 13,443 $ 26,011 Denominator: Weighted average common shares outstanding—basic 19,751 19,426 Dilutive effect of common stock equivalents 1,022 1,384 Weighted average common shares outstanding—diluted 20,773 20,810 Net income per share common share—diluted $ 0.65 $ 1.25 Anti-dilutive common stock equivalents excluded from above 1,896 606 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Components of Lease Expense for Real Estate and Equipment Leases and Other Information Related to Leases | The components of lease expense for the Company’s real estate and equipment leases were as follows: Three Months Ended December 31, 2019 (in thousands) Operating lease cost $ 663 Short-term lease cost — Variable lease cost 479 $ 1,142 Other information: Three months ended December 31, 2019 (in thousands) Cash paid for amounts included in the measurement of operating lease liabilities $ 736 Operating lease liabilities arising from obtaining right-of-use assets $ 1,131 December 31, 2019 (in thousands) Weighted-average remaining lease term - operating leases (in years) 2.99 Weighted-average discount rate - operating leases 6.50 % |
Schedule of Future Annual Minimum Lease Payments | Future annual minimum lease payments under the Company’s real estate and equipment operating leases as of December 31, 2019 were as follows: Years ended September 30, (in thousands) 2020 $ 2,713 2021 3,457 2022 2,786 2023 608 2024 519 Total future minimum lease payments 10,083 Less: imputed interest (964 ) Total operating lease liabilities $ 9,119 |
Schedule of Lease Included in Balance Sheet | Included in the balance sheet: December 31, 2019 (in thousands) Current operating lease liabilities $ 3,132 Operating lease liabilities, net of current portion 5,987 Total operating lease liabilities $ 9,119 |
Future Minimum Lease Payments | As previously disclosed in the Company’s 2019 Annual Report on Form 10-K and under the previous lease accounting standard, ASC 840, Leases, the following table summarizes the future minimum lease payments due under the operating leases as of September 30, 2019: Years Ended September 30, Operating Leases Capital Leases (in thousands) 2020 $ 2,728 $ 93 2021 2,803 101 2022 2,684 99 2023 608 — 2024 519 — Thereafter — — Total $ 9,342 $ 293 |
Nature of the Business and Ba_2
Nature of the Business and Basis of Presentation - Additional Information (Detail) | 3 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Entity incorporated, in year | 1995 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | ||
Oct. 31, 2019 | Dec. 31, 2019 | Oct. 01, 2019 | |
Accounting Policies [Abstract] | |||
Lessee operating lease, option to extend | true | ||
Lessee, operating lease, description | The Company has elected, under Topic 842, the further practical expedient not to separate non-lease components from the lease components to which they relate and instead to combine them and account for them as a single lease component. The Company also elected the accounting policy election to keep leases with a term of twelve months or less off the balance sheet and to recognize payments for those leases on a straight-line basis over the lease term. | ||
Right-of-use asset | $ 7,762 | $ 7,151 | |
Lease liability | $ 9,119 | $ 8,622 |
Fair Value of Financial Asset_3
Fair Value of Financial Assets and Liabilities - Financial Assets and Liabilities that were Subject to Fair Value Measurement on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Assets: | ||
Marketable securities | $ 387,168 | $ 349,019 |
Assets, Fair Value Disclosure, Total | 410,656 | 393,588 |
Liabilities: | ||
Liabilities, Fair Value Disclosure, Total | 1,628 | 1,628 |
Series 1 Nonconvertible Preferred Stock [Member] | ||
Liabilities: | ||
Liabilities | 1,628 | 1,628 |
Level 1 [Member] | ||
Assets: | ||
Assets, Fair Value Disclosure, Total | 182,921 | 215,084 |
Level 2 [Member] | ||
Assets: | ||
Assets, Fair Value Disclosure, Total | 227,735 | 178,504 |
Level 3 [Member] | ||
Liabilities: | ||
Liabilities, Fair Value Disclosure, Total | 1,628 | 1,628 |
Level 3 [Member] | Series 1 Nonconvertible Preferred Stock [Member] | ||
Liabilities: | ||
Liabilities | 1,628 | 1,628 |
Money Market Funds [Member] | ||
Assets: | ||
Cash equivalents | 6,065 | 44,569 |
Money Market Funds [Member] | Level 1 [Member] | ||
Assets: | ||
Cash equivalents | 6,065 | 44,569 |
Corporate Bonds [Member] | ||
Assets: | ||
Marketable securities | 133,043 | 111,837 |
Corporate Bonds [Member] | Level 2 [Member] | ||
Assets: | ||
Marketable securities | 133,043 | 111,837 |
Commercial Paper [Member] | ||
Assets: | ||
Cash equivalents | 17,423 | |
Marketable securities | 77,269 | 66,667 |
Commercial Paper [Member] | Level 2 [Member] | ||
Assets: | ||
Cash equivalents | 17,423 | |
Marketable securities | 77,269 | 66,667 |
U.S. Treasury Notes [Member] | ||
Assets: | ||
Marketable securities | 176,856 | 170,515 |
U.S. Treasury Notes [Member] | Level 1 [Member] | ||
Assets: | ||
Marketable securities | $ 176,856 | $ 170,515 |
Fair Value of Financial Asset_4
Fair Value of Financial Assets and Liabilities - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Transfers between Level 1, Level 2 and Level 3 | $ 0 | $ 0 |
Fair Value of Financial Asset_5
Fair Value of Financial Assets and Liabilities - Fair Value Measurements of the Company's Outstanding Series 1 Nonconvertible Preferred Stock (Detail) - Level 3 [Member] | Dec. 31, 2019 | Sep. 30, 2019 |
Discount Rate [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Range (Weighted Average) | 0.0575 | 0.0600 |
Minimum [Member] | Probabilities of Payout [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Range (Weighted Average) | 0 | 0 |
Maximum [Member] | Probabilities of Payout [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Range (Weighted Average) | 60 | 60 |
Fair Value of Financial Asset_6
Fair Value of Financial Assets and Liabilities - Rollforward of Aggregate Fair Values of Outstanding Series 1 Nonconvertible Preferred Stock (Detail) - Series 1 Nonconvertible Preferred Stock [Member] $ in Thousands | Dec. 31, 2019USD ($) |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Beginning Balance | $ 1,628 |
Ending Balance | $ 1,628 |
Marketable Securities - Fair Va
Marketable Securities - Fair Value of Available-for-Sale Marketable Securities by Type of Security (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 386,909 | $ 348,876 |
Gross Unrealized Gains | 271 | 230 |
Gross Unrealized Losses | (12) | (87) |
Fair Value | 387,168 | 349,019 |
Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 77,269 | 66,667 |
Fair Value | 77,269 | 66,667 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 132,928 | 111,690 |
Gross Unrealized Gains | 127 | 170 |
Gross Unrealized Losses | (12) | (23) |
Fair Value | 133,043 | 111,837 |
U.S. Treasury Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 176,712 | 170,519 |
Gross Unrealized Gains | 144 | 60 |
Gross Unrealized Losses | (64) | |
Fair Value | $ 176,856 | $ 170,515 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Sep. 30, 2019 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Long-term marketable securities | $ 40,941 | $ 65,013 |
Maximum [Member] | Short Term Marketable Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Maturity period of the marketable securities | 1 year | |
Long Term Marketable Securities [Member] | Maximum [Member] | Corporate Bonds and U.S. Treasury Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Maturity period of the marketable securities | 3 years | |
Long Term Marketable Securities [Member] | Minimum [Member] | Corporate Bonds and U.S. Treasury Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Maturity period of the marketable securities | 1 year |
Accrued Expenses and Other Lo_3
Accrued Expenses and Other Long-Term Liabilities - Accrued Expenses and Other Current Liabilities as well as Other Long-Term Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Sep. 30, 2019 |
Accrued expenses: | ||
Accrued research and development expenses | $ 3,877 | $ 6,936 |
Accrued payroll and related expenses | 1,628 | 3,894 |
Accrued clinical manufacturing | 2,580 | 3,447 |
Accrued professional fees | 921 | 759 |
Accrued other | 405 | 884 |
Accrued expenses | 9,411 | 15,920 |
Other long-term liabilities: | ||
Uncertain tax positions | 1,679 | 1,746 |
Accrued rent expense | 900 | |
Capital lease obligation | 200 | |
Asset retirement obligation | 254 | 254 |
Other long-term liabilities | $ 1,933 | $ 3,100 |
AbbVie Collaboration - Addition
AbbVie Collaboration - Additional Information (Detail) - AbbVie [Member] $ in Thousands | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |
Cash consideration received under collaboration from sale of preferred stock, research funding payments, milestone payments and royalties | $ 922,000 |
Collaboration agreement tiered royalty description | from ten percent up to twenty percent, or on a blended basis from ten percent up to the high teens, on the portion of AbbVie’s calendar year net sales |
Series 1 Nonconvertible Prefe_2
Series 1 Nonconvertible Preferred Stock - Additional Information (Detail) - Series 1 Nonconvertible Preferred Stock [Member] shares in Thousands | Dec. 31, 2019shares |
Class Of Stock [Line Items] | |
Preferred stock, shares issued | 1,931 |
Preferred stock, shares outstanding | 1,931 |
Stock-Based Awards - Summary of
Stock-Based Awards - Summary of Stock Option Activity Including Performance Based Options (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Sep. 30, 2019 | |
Options | ||
Outstanding as of beginning of period | 2,967 | |
Granted | 577 | |
Exercised | (76) | |
Forfeited | (23) | |
Outstanding as of end of period | 3,445 | 2,967 |
Options vested and expected to vest as of end of period | 3,445 | |
Options exercisable as of end of period | 2,002 | |
Weighted Average Exercise Price | ||
Outstanding | $ 46.54 | |
Granted | 63.32 | |
Exercised | 30.16 | |
Forfeited | 75.36 | |
Outstanding | 49.53 | $ 46.54 |
Options vested and expected to vest as of end of period | 49.53 | |
Options exercisable as of end of period | $ 38.28 | |
Weighted Average Remaining Contractual Term | ||
Outstanding as of end of period | 6 years 9 months 18 days | 6 years 8 months 12 days |
Options vested and expected to vest as of end period | 6 years 9 months 18 days | |
Options exercisable as of end of period | 5 years 4 months 24 days | |
Aggregate Intrinsic Value | ||
Aggregate Intrinsic Value | $ 58,637 | $ 57,336 |
Options exercisable as of end of period | 51,630 | |
Options vested and expected to vest as of December 31, 2019 | $ 58,637 |
Stock-Based Awards - Additional
Stock-Based Awards - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate of unrecognized stock-based compensation cost | $ 52,006 | |
Weighted average recognition period | 2 years 9 months 18 days | |
Restricted Stock Units [Member] | Tranche One [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 50.00% | |
Vesting period | 3 years | |
Restricted Stock Units [Member] | Tranche Two [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 50.00% | |
Vesting period | 4 years | |
Executive Officers [Member] | Relative Total Stockholder Return Units [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares range percentage | 0.00% | |
Executive Officers [Member] | Relative Total Stockholder Return Units [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares range percentage | 150.00% |
Stock-Based Awards - Summary _2
Stock-Based Awards - Summary of PSUs and rTSRUs Activity (Detail) shares in Thousands | 3 Months Ended |
Dec. 31, 2019$ / sharesshares | |
PSUs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested, beginning balance | shares | 41 |
Granted | shares | 27 |
Unvested, ending balance | shares | 68 |
Weighted Average Grant Date Fair Value, Unvested beginning balance | $ / shares | $ 73.02 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 63.94 |
Weighted Average Grant Date Fair Value, Unvested ending balance | $ / shares | $ 69.37 |
rTSRUs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested, beginning balance | shares | 41 |
Granted | shares | 27 |
Unvested, ending balance | shares | 68 |
Weighted Average Grant Date Fair Value, Unvested beginning balance | $ / shares | $ 67.76 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 45.81 |
Weighted Average Grant Date Fair Value, Unvested ending balance | $ / shares | $ 58.94 |
Stock-Based Awards - Summary _3
Stock-Based Awards - Summary of Restricted Stock Unit Activity (Detail) - Restricted Stock Units [Member] shares in Thousands | 3 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested, beginning balance | shares | 95 |
Granted | shares | 0 |
Vested | shares | (48) |
Cancelled | shares | (1) |
Unvested, ending balance | shares | 46 |
Weighted Average Grant Date Fair Value, Unvested beginning balance | $ / shares | $ 30 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 0 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 30 |
Weighted Average Grant Date Fair Value, Cancelled | $ / shares | 30 |
Weighted Average Grant Date Fair Value, Unvested ending balance | $ / shares | $ 30 |
Stock-Based Awards - Stock-Base
Stock-Based Awards - Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $ 5,098 | $ 5,843 |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 4,335 | 3,904 |
Performance Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 243 | 1,206 |
rTSRUs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 362 | 531 |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 158 | 202 |
Research and Development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 2,492 | 2,274 |
General and Administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $ 2,606 | $ 3,569 |
Net Income Per Share - Basic an
Net Income Per Share - Basic and Diluted Net Income Per Share Attributable to Common Stockholders (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Basic net income per share: | ||
Net income | $ 13,443 | $ 26,011 |
Weighted average common shares outstanding—basic | 19,751 | 19,426 |
Net income per share common share—basic | $ 0.68 | $ 1.34 |
Diluted net income per share: | ||
Net income | $ 13,443 | $ 26,011 |
Weighted average common shares outstanding—basic | 19,751 | 19,426 |
Dilutive effect of common stock equivalents | 1,022 | 1,384 |
Weighted average common shares outstanding—diluted | 20,773 | 20,810 |
Net income per share common share—diluted | $ 0.65 | $ 1.25 |
Anti-dilutive common stock equivalents excluded from above | 1,896 | 606 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense | $ 1,504 | $ 3,730 | |
Unrecognized tax benefits | $ 1,679 | $ 1,650 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2019USD ($)Lease | Oct. 31, 2019 | Sep. 30, 2019USD ($) | |
Lessee Lease Description [Line Items] | |||
Number of leases | Lease | 2 | ||
Lease periods commencing upon shipment | 18 months | ||
Outstanding letter of credit | $ 608 | $ 608 | |
Restricted cash | $ 608 | $ 608 | |
First Lease [Member] | 500 Arsenal Street, Watertown, Massachusetts [Member] | |||
Lessee Lease Description [Line Items] | |||
Office lease expiration period | 2022-09 | ||
Lease option to extend | an option to extend the lease term for an additional five years. | ||
Second Lease [Member] | 400 Talcott Avenue, Watertown, Massachusetts [Member] | |||
Lessee Lease Description [Line Items] | |||
Office lease expiration period | 2024-08 | ||
Period of lease agreement | 2018-09 | ||
Lease option to extend | two options to extend the lease term for an additional three years each. |
Leases - Components of Lease Ex
Leases - Components of Lease Expense for Real Estate and Equipment Leases and Other Information Related to Leases (Detail) $ in Thousands | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 663 |
Variable lease cost | 479 |
Lease, Cost | 1,142 |
Cash paid for amounts included in the measurement of operating lease liabilities | 736 |
Operating lease liabilities arising from obtaining right-of-use assets | $ 1,131 |
Weighted-average remaining lease term - operating leases (in years) | 2 years 11 months 26 days |
Weighted-average discount rate - operating leases | 6.50% |
Leases - Schedule of Future Ann
Leases - Schedule of Future Annual Minimum Lease Payments (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Oct. 01, 2019 |
Leases [Abstract] | ||
2020 | $ 2,713 | |
2021 | 3,457 | |
2022 | 2,786 | |
2023 | 608 | |
2024 | 519 | |
Total future minimum lease payments | 10,083 | |
Less: imputed interest | (964) | |
Lease liability | $ 9,119 | $ 8,622 |
Leases - Schedule of Lease Incl
Leases - Schedule of Lease Included in Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Oct. 01, 2019 |
Leases [Abstract] | ||
Operating lease liabilities | $ 3,132 | |
Operating lease liabilities, net of current portion | 5,987 | |
Total operating lease liabilities | $ 9,119 | $ 8,622 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 2,728 |
2021 | 2,803 |
2022 | 2,684 |
2023 | 608 |
2024 | 519 |
Total | 9,342 |
2020 | 93 |
2021 | 101 |
2022 | 99 |
Total | $ 293 |